Just yesterday, Gould Partners urged investor to aggressively buy shares in Pressure BioSciences (PBIO). This bullish call was reiterated by other analysts and now, in our view, confirmed by favorable business momentum.

The developer of lab sample equipment recently entered into a JV agreement with Sage-N Research to create software for Pressure BioSciences' innovative pressure cycling technology (PCT). This news comes off of two other favorable announcements, namely that (1) the company is ramping up its distributors and (2) partnering with the Henry C. Lee Institute of Forensic Sciences to evaluate PCT. We view (2) as putting the company into play, since, around 3 weeks ago, Abbott Labs (ABT) entered into an agreement with the University of North Texas Science Center to evaluate a forensic solution. Scientists at the University of North Texas and Florida International University have already expressed how PCT has helped them improve DNA yields. And more than 100 independent publications have backed this positive consensus.

As Pressure BioSciences begins to aggressively commercialize operations through increasing marketing staff, international distributors, and partnerships, it is well positioned to surge in value. A discounted cash flow analysis of the stock demonstrates that Pressure BioSciences is on the verge of heading skyward. It is only a matter of time before investors pick up on the fundamentals.

The company finished 2010 with $1.34M in revenue. In the second half of 2011, the top-line spiked 66% off of the first half. Fourth quarter consumable sales were up 77% sequentially. Despite these impressive figures, for the sake of being safe, Gould Partners conservatively models a 12.8% per annum growth rate in revenue over the next six years. This projection is in-line with consensus expectations for peer company Thermo Fisher Scientific Inc (TMO). But, since Thermo Fisher has a much larger base to grow off of, our projection significantly understates PBIO's potential.

Cost of goods sold has also fallen drastically over the last reported three years: from 47.1% of revenue in 2008 to 28.4% in 2010. We expect this figure to trend from 25% to 20% over the next six years as R&D hovers around 6% to 1%, and SG&A holds steady at 27%.

We then factor in taxes, net increases in working capital, and debt while adjusting for depreciation. Taking a perpetual growth rate of 2.5% and discounting backwards by an overly high rate of 15%, our bearish price target for PBIO is $1.01. This implies 58% upside. As noted above, this calculation is overly reserved on revenue projections and the discount rate. Reason thus calls for a "strong buy" recommendation.

With the stock trading 10% book value, we believe firms like Abbott and Thermo Fisher are most likely considering a takeover. Pressure BioSciences already has over 150 customers under its belt, demonstrated the efficacy of its products, and proven supportive demand. Access to a wider client base would significantly catalyze revenue. If an outright buyout does not emerge, we anticipate the firm to receive multiple partnership requests. It should be noted that these partnerships could, in turn, develop into an acquisition.

With $910K capital backing from leading federal agencies (ie. NIH and DoD) in 2011, a strong IP profile, critical diversification in three different markets (ie. mass spectrometry, forensics, histology), and industry acclaim, PBIO may very well be the hottest stock of 2012. This is a company that, again, we see, at a minimum, yielding double-digit returns. When the Street picks up on all of this (and we hope to alert professionals), understand that this stock is heading up.

DISCLAIMER: The distributor of this research report, Gould Partners, is not a licensed investment adviser or broker dealer. Investors are cautioned to perform their own due diligence as information contained within this report has been derived from public sources and cannot be guaranteed by us to be fully accurate. We are a consultant to a third-party EAG, representing Pressure BioSciences and have received one thousand dollars for independent research. Always discuss investments with a licensed professional before making any financial decision. Statements made herein are often "forward-looking statements" as stipulated under Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934, and the Private Securities Litigation Reform Act of 1995. Since these statements are uncertain, actual results may be materially different from those expected.]]>
Tue, 20 Mar 2012 09:52:41 -0400RECOMMENDATION: Reiterate "STRONG BUY"

MINIMUM PT: $1.01, 58% upside

Just yesterday, Gould Partners urged investor to aggressively buy shares in Pressure BioSciences (PBIO). This bullish call was reiterated by other analysts and now, in our view, confirmed by favorable business momentum.

The developer of lab sample equipment recently entered into a JV agreement with Sage-N Research to create software for Pressure BioSciences' innovative pressure cycling technology (PCT). This news comes off of two other favorable announcements, namely that (1) the company is ramping up its distributors and (2) partnering with the Henry C. Lee Institute of Forensic Sciences to evaluate PCT. We view (2) as putting the company into play, since, around 3 weeks ago, Abbott Labs (ABT) entered into an agreement with the University of North Texas Science Center to evaluate a forensic solution. Scientists at the University of North Texas and Florida International University have already expressed how PCT has helped them improve DNA yields. And more than 100 independent publications have backed this positive consensus.

As Pressure BioSciences begins to aggressively commercialize operations through increasing marketing staff, international distributors, and partnerships, it is well positioned to surge in value. A discounted cash flow analysis of the stock demonstrates that Pressure BioSciences is on the verge of heading skyward. It is only a matter of time before investors pick up on the fundamentals.

The company finished 2010 with $1.34M in revenue. In the second half of 2011, the top-line spiked 66% off of the first half. Fourth quarter consumable sales were up 77% sequentially. Despite these impressive figures, for the sake of being safe, Gould Partners conservatively models a 12.8% per annum growth rate in revenue over the next six years. This projection is in-line with consensus expectations for peer company Thermo Fisher Scientific Inc (TMO). But, since Thermo Fisher has a much larger base to grow off of, our projection significantly understates PBIO's potential.

Cost of goods sold has also fallen drastically over the last reported three years: from 47.1% of revenue in 2008 to 28.4% in 2010. We expect this figure to trend from 25% to 20% over the next six years as R&D hovers around 6% to 1%, and SG&A holds steady at 27%.

We then factor in taxes, net increases in working capital, and debt while adjusting for depreciation. Taking a perpetual growth rate of 2.5% and discounting backwards by an overly high rate of 15%, our bearish price target for PBIO is $1.01. This implies 58% upside. As noted above, this calculation is overly reserved on revenue projections and the discount rate. Reason thus calls for a "strong buy" recommendation.

With the stock trading 10% book value, we believe firms like Abbott and Thermo Fisher are most likely considering a takeover. Pressure BioSciences already has over 150 customers under its belt, demonstrated the efficacy of its products, and proven supportive demand. Access to a wider client base would significantly catalyze revenue. If an outright buyout does not emerge, we anticipate the firm to receive multiple partnership requests. It should be noted that these partnerships could, in turn, develop into an acquisition.

With $910K capital backing from leading federal agencies (ie. NIH and DoD) in 2011, a strong IP profile, critical diversification in three different markets (ie. mass spectrometry, forensics, histology), and industry acclaim, PBIO may very well be the hottest stock of 2012. This is a company that, again, we see, at a minimum, yielding double-digit returns. When the Street picks up on all of this (and we hope to alert professionals), understand that this stock is heading up.

DISCLAIMER: The distributor of this research report, Gould Partners, is not a licensed investment adviser or broker dealer. Investors are cautioned to perform their own due diligence as information contained within this report has been derived from public sources and cannot be guaranteed by us to be fully accurate. We are a consultant to a third-party EAG, representing Pressure BioSciences and have received one thousand dollars for independent research. Always discuss investments with a licensed professional before making any financial decision. Statements made herein are often "forward-looking statements" as stipulated under Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934, and the Private Securities Litigation Reform Act of 1995. Since these statements are uncertain, actual results may be materially different from those expected.]]>
abtpbiotmolong ideashealthcaremedical equipmentWhy Barrick, Silver Wheaton Are Eyeing GLDNhttp://seekingalpha.com/instablog/1020655-takeover-analyst/312061-why-barrick-silver-wheaton-are-eyeing-gldn?source=feed
312061Note: GLDN has, in my view, taken an irrational dip for the day. Investors who buy from the lows are likely to reap meaningful upside.

As Seeking Alpha's leading contributor on Basic Materials, I have run into many attractive gold and silver plays. My AuRico Gold (AUQ) pick, for example, is now up 6.3% in just a little over one month since I first presented my bullish thesis. Rising tension between Israel and Iran - to say nothing about the Fed's announcement of continuing low interest rates at least until 2014 - will further drive secular appreciation in the years ahead. The basic materials sector, in general, provides an attractive hedge against macro volatility and inflation while emerging gold / silver producers, in specific, provide the real sources of upside.

Gold Dynamics is one such emerging gold and silver explorer that has been rightfully soaring in recent days. In the last three days of trading, buy-and-hold investors have more than doubled their money and, fortunately, technical and fundamental indicators are pointing towards a continued bull run.

ATTRACTIVE OWNERSHIP NEAR THE MAJORS

The firm is focusing on developing the Santiago Gold Project, which spans 315.7 hectares around the "Sierra San Francisco" mountain range in Durango, Mexico. This is located near the Promontorio project, which has been one of Mexico's most lucrative at a historical resource size estimated at 12M oz of gold. Santiago has 5 contiguous mining concessions that have been under-explored despite the potential for ore shoots to yield more than 50 g/t based on sampling. With Silver Wheaton's (SLW) interest in Promontorio being located just 7km away from Santiago, Gold Dynamics merits a takeover premium on top of the innate value of its inferred resources.

Exploited ore shoots at Bella Vista, one of the mine's concessions, have yielded between grades between 8 and 35 g/t. Moreover, the site has optimal exploration potential for Au-Ag given its ideal hydrothermal activity and geological structure. Major E-W and WNE-ENE faults intersect with NW-SE trending faults are represented at Santiago, which provides a proper environment for imiting operational costs and allowing for smooth production.

STRONG UPSIDE, LOW DOWNSIDE

The inferred total gold resource of Bella Vista has been estimated at 71,343 oz of gold. A 5% loss of gold from mining production and an 85% recovery factor at today's price of gold would put the implied value at nearly $100M. Even assuming that the firm only develops 5% of its resource at Bella Vista next year at profit margins of 25% would suggest the stock price quadrupling. Moreover, I find that any attempt to reverse engineer a value below that which is currently assessed by the market would have to be predicated upon absurdly low assumptions off of the inferred resources. Accordingly, as much as Gold Dynamics is a high reward play in the emerging gold space, it is equally -if not more - a safe play.

Fortunately, management is also not resting on their laurels. The company recently agreed to acquire Lake Ste-Anne in Canada, which contains 6 silver and gold plays. This will likely gain the attention of Toronto-based Barrick (ABX), which has been an aggressive takeover suitor over the the last half decade. Investors that get in early before gold production ramps up will particularly benefit from greater informational flow, potential partnerships, and takeover offers.

Originally posted on Feb 14 12:52 PM

DISCLOSURE: The distributor of this research report, Gould Partners, is not a licensed investment adviser or broker dealer. Investors are cautioned to perform their own due diligence as information contained within this report has been derived from public sources and cannot be guaranteed by us to be fully accurate. We are a consultant to a third-party EAG, representing Gold Dynamics and have received one thousand dollars for independent research. Always discuss investments with a licensed professional before making any financial decision. Statements made herein are often "forward-looking statements" as stipulated under Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934, and the Private Securities Litigation Reform Act of 1995. Since these statements are uncertain, actual results may be materially different from those expected.]]>
Tue, 14 Feb 2012 14:24:21 -0500Note: GLDN has, in my view, taken an irrational dip for the day. Investors who buy from the lows are likely to reap meaningful upside.

As Seeking Alpha's leading contributor on Basic Materials, I have run into many attractive gold and silver plays. My AuRico Gold (AUQ) pick, for example, is now up 6.3% in just a little over one month since I first presented my bullish thesis. Rising tension between Israel and Iran - to say nothing about the Fed's announcement of continuing low interest rates at least until 2014 - will further drive secular appreciation in the years ahead. The basic materials sector, in general, provides an attractive hedge against macro volatility and inflation while emerging gold / silver producers, in specific, provide the real sources of upside.

Gold Dynamics is one such emerging gold and silver explorer that has been rightfully soaring in recent days. In the last three days of trading, buy-and-hold investors have more than doubled their money and, fortunately, technical and fundamental indicators are pointing towards a continued bull run.

ATTRACTIVE OWNERSHIP NEAR THE MAJORS

The firm is focusing on developing the Santiago Gold Project, which spans 315.7 hectares around the "Sierra San Francisco" mountain range in Durango, Mexico. This is located near the Promontorio project, which has been one of Mexico's most lucrative at a historical resource size estimated at 12M oz of gold. Santiago has 5 contiguous mining concessions that have been under-explored despite the potential for ore shoots to yield more than 50 g/t based on sampling. With Silver Wheaton's (SLW) interest in Promontorio being located just 7km away from Santiago, Gold Dynamics merits a takeover premium on top of the innate value of its inferred resources.

Exploited ore shoots at Bella Vista, one of the mine's concessions, have yielded between grades between 8 and 35 g/t. Moreover, the site has optimal exploration potential for Au-Ag given its ideal hydrothermal activity and geological structure. Major E-W and WNE-ENE faults intersect with NW-SE trending faults are represented at Santiago, which provides a proper environment for imiting operational costs and allowing for smooth production.

STRONG UPSIDE, LOW DOWNSIDE

The inferred total gold resource of Bella Vista has been estimated at 71,343 oz of gold. A 5% loss of gold from mining production and an 85% recovery factor at today's price of gold would put the implied value at nearly $100M. Even assuming that the firm only develops 5% of its resource at Bella Vista next year at profit margins of 25% would suggest the stock price quadrupling. Moreover, I find that any attempt to reverse engineer a value below that which is currently assessed by the market would have to be predicated upon absurdly low assumptions off of the inferred resources. Accordingly, as much as Gold Dynamics is a high reward play in the emerging gold space, it is equally -if not more - a safe play.

Fortunately, management is also not resting on their laurels. The company recently agreed to acquire Lake Ste-Anne in Canada, which contains 6 silver and gold plays. This will likely gain the attention of Toronto-based Barrick (ABX), which has been an aggressive takeover suitor over the the last half decade. Investors that get in early before gold production ramps up will particularly benefit from greater informational flow, potential partnerships, and takeover offers.

Originally posted on Feb 14 12:52 PM

DISCLOSURE: The distributor of this research report, Gould Partners, is not a licensed investment adviser or broker dealer. Investors are cautioned to perform their own due diligence as information contained within this report has been derived from public sources and cannot be guaranteed by us to be fully accurate. We are a consultant to a third-party EAG, representing Gold Dynamics and have received one thousand dollars for independent research. Always discuss investments with a licensed professional before making any financial decision. Statements made herein are often "forward-looking statements" as stipulated under Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934, and the Private Securities Litigation Reform Act of 1995. Since these statements are uncertain, actual results may be materially different from those expected.]]>
abxslwabxslwbasic materialsgoldminingWhy A Barrick Takeover Of Mustang Is Likelyhttp://seekingalpha.com/instablog/1020655-takeover-analyst/289191-why-a-barrick-takeover-of-mustang-is-likely?source=feed
289191
Given concerns about hyperinflation and domestic stagnation, many experts are forecasting that gold will continue to surge. While Jim Rogers, co-founder of the multi-billon dollar Quantum Fund, expects gold to hit $3.5K/oz soon, Rob McEwen of Goldcorp (GG) expects it to trend above $5K/oz. Firms like Barrick (ABX) and Freeport (FCX) may be able to generate solid streams of free cash flow, but the best returns naturally come from smaller companies where asymmetric information significantly discounts market value below intrinsic value. Accordingly, exposure to small-cap emerging market gold producers are, in my view, the ideal way to hedge against macro uncertainty.

Fortunately, investors are just starting to pick up on how undervalued Mustang Alliances (MSTG) is. Subsequent informational flow will only further render the company an ideal takeover target.

STRUCK GOLD!; OR WHY A TAKEOVER IS LIKELY

Mustang may be resting on the world's largest gold and silver site. It has secured exclusive rights to the Choluteca District of Southern Honduras - an area that foreign gold producers have been blocked from developing due to government regulations. This area was found to have have gold samples worth as much as 305.2 g/t. When you consider that Goldcorp (GG) bought out Glamis Gold and its El Sauzal mine for $9.5B - a site whose samples averaged a value between 0.4 and 0.6 g/t - the takeover potential of Mustang is nothing short of tremendous. Local "pick and shovel" miners have yielded 1K oz of gold per month. If Mustang is just able to meet this level and no more while trading at 12x sales, it should have a minimum value of one quarter of $1B.

The two concessions that Mustang specifically owns rights to are Corpus I-V and El Potosi. The small-cap gold firm has 4.4K hectares thus far in a proven gold belt and is under negotiation for 12K more. While a surface study found samples worth 10.4 g/t at Corpus I-V, gold values have been estimated as high as 305.2 g/t at El Potosi. The latter has had more than 15 gold zones identified and the Tajo mine is already ready for production, which will substantially benefit early investors.

Thus, acquiring Mustang would be almost instantaneously accretive to EPS for Barrick. Previously called the "hedging miracle" here, Barrick has underperformed the competition for the year to date and is in need of a catalyst to help attract back investors. Consensus estimates for Barrick's EPS forecast that it will grow by 46.7% to $4.87 in 2011 and then by 16.2% and 19.3% more in the following two years.

The recent resolution of the Grasberg strike has increased Barrick's visibility, but challenges in labor relations make an acquisition of a local producer highly desirable. With backing from the Honduran government, Mustang is optimally capable of handling any labor disruptions.

While my forecasts on Freeport and Yamana (AUY) have proven accurate with double-digit returns (see hereand here), I am even more optimistic about Mustang. Simply put, Mustang could be the top winner of 2012 as both a takeover target and a developer of a region that can support sustainable generation of free cash flow.

The Newmont 1998 Joint Venture report found:

"The physical proximity of world class, greater than one million ounce gold deposits proximal to the Nicaraguan Trough… indicates a strong possibility for analogous deposits at Manto and Potosi [which Mustang is exploring]

And the only meaningful way for major firms, like Barrick, to gain access to all of these regions is through acquiring Mustang. With regulations loosening, foreign companies can begin to operate in these emerging markets - but the process will only begin by taking over the companies that secured the initial exclusive development rights.

DISCLOSURE: The distributor of this research report, Gould Partners, is not a licensed investment adviser or broker dealer. Investors are cautioned to perform their own due diligence as information contained within this report has been derived by public sources and cannot be guaranteed by us to be fully accurate. We are a consultant to a third-party EAG, representing Mustang and have received one thousand dollars for independent research. Always discuss investments with a licensed professional before making any financial decision. Statements made herein are often "forward-looking statements" as stipulated under Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934, and the Private Securities Litigation Reform Act of 1995. Since these statements are uncertain, actual results may be materially different from those expected.]]>
Tue, 07 Feb 2012 12:50:37 -0500
Given concerns about hyperinflation and domestic stagnation, many experts are forecasting that gold will continue to surge. While Jim Rogers, co-founder of the multi-billon dollar Quantum Fund, expects gold to hit $3.5K/oz soon, Rob McEwen of Goldcorp (GG) expects it to trend above $5K/oz. Firms like Barrick (ABX) and Freeport (FCX) may be able to generate solid streams of free cash flow, but the best returns naturally come from smaller companies where asymmetric information significantly discounts market value below intrinsic value. Accordingly, exposure to small-cap emerging market gold producers are, in my view, the ideal way to hedge against macro uncertainty.

Fortunately, investors are just starting to pick up on how undervalued Mustang Alliances (MSTG) is. Subsequent informational flow will only further render the company an ideal takeover target.

STRUCK GOLD!; OR WHY A TAKEOVER IS LIKELY

Mustang may be resting on the world's largest gold and silver site. It has secured exclusive rights to the Choluteca District of Southern Honduras - an area that foreign gold producers have been blocked from developing due to government regulations. This area was found to have have gold samples worth as much as 305.2 g/t. When you consider that Goldcorp (GG) bought out Glamis Gold and its El Sauzal mine for $9.5B - a site whose samples averaged a value between 0.4 and 0.6 g/t - the takeover potential of Mustang is nothing short of tremendous. Local "pick and shovel" miners have yielded 1K oz of gold per month. If Mustang is just able to meet this level and no more while trading at 12x sales, it should have a minimum value of one quarter of $1B.

The two concessions that Mustang specifically owns rights to are Corpus I-V and El Potosi. The small-cap gold firm has 4.4K hectares thus far in a proven gold belt and is under negotiation for 12K more. While a surface study found samples worth 10.4 g/t at Corpus I-V, gold values have been estimated as high as 305.2 g/t at El Potosi. The latter has had more than 15 gold zones identified and the Tajo mine is already ready for production, which will substantially benefit early investors.

Thus, acquiring Mustang would be almost instantaneously accretive to EPS for Barrick. Previously called the "hedging miracle" here, Barrick has underperformed the competition for the year to date and is in need of a catalyst to help attract back investors. Consensus estimates for Barrick's EPS forecast that it will grow by 46.7% to $4.87 in 2011 and then by 16.2% and 19.3% more in the following two years.

The recent resolution of the Grasberg strike has increased Barrick's visibility, but challenges in labor relations make an acquisition of a local producer highly desirable. With backing from the Honduran government, Mustang is optimally capable of handling any labor disruptions.

While my forecasts on Freeport and Yamana (AUY) have proven accurate with double-digit returns (see hereand here), I am even more optimistic about Mustang. Simply put, Mustang could be the top winner of 2012 as both a takeover target and a developer of a region that can support sustainable generation of free cash flow.

The Newmont 1998 Joint Venture report found:

"The physical proximity of world class, greater than one million ounce gold deposits proximal to the Nicaraguan Trough… indicates a strong possibility for analogous deposits at Manto and Potosi [which Mustang is exploring]

And the only meaningful way for major firms, like Barrick, to gain access to all of these regions is through acquiring Mustang. With regulations loosening, foreign companies can begin to operate in these emerging markets - but the process will only begin by taking over the companies that secured the initial exclusive development rights.

DISCLOSURE: The distributor of this research report, Gould Partners, is not a licensed investment adviser or broker dealer. Investors are cautioned to perform their own due diligence as information contained within this report has been derived by public sources and cannot be guaranteed by us to be fully accurate. We are a consultant to a third-party EAG, representing Mustang and have received one thousand dollars for independent research. Always discuss investments with a licensed professional before making any financial decision. Statements made herein are often "forward-looking statements" as stipulated under Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934, and the Private Securities Litigation Reform Act of 1995. Since these statements are uncertain, actual results may be materially different from those expected.]]>
mstgabxgoldbasic materials